BEST QUARTER AT THE END OF THE YEAR; NEVERTHELESS, BELOW PREVIOUS YEAR'S RESULT
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Even though market momentum in 2024 gained in consistency and speed from quarter to quarter, particularly in the second half of the year, the Essen office letting market only recorded take-up of around 93,000 m² in 2024. As a result, both the previous year's result (-18%) and the long-term average (-21%) were missed.
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In the first half of the year, there were no major contracts signed. It was during the third quarter that the letting of around 11,000 sqm by Telus International provided a boost. The good final quarter (31,000 sqm), thank to Evonik's letting of 14,000 sqm in the Südviertel district representing the largest contract signing of the year and around 45% of the Q4 result. At the end of the year, lettings of 5,000 sqm or more accounted for a total of around 34%.
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As in the previous quarter, Südviertel remains the submarket with the highest take-up, accounting for around 38,000 sqm or a good 41% of the total volume at the end of the year. The remaining market area also made a notable contribution of around 26,000 sqm (share of 28%).
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The prime rent remained stable at €18.00 per sqm at the end of the year. It should be emphasized that it is not only achieved in the city centre, but also in the Südviertel submarket, where pressure on rents is caused by the combination of a well-connected location and the scarcity of modern space. The generally more volatile average rent is currently €12.80 per sqm (+2% compared to Q4 2023).